Inflation: Highest in 17 Years

The annual inflation rate surged to 5.6% in July - the highest point in 17 years, the government announced Thursday.

The previous month's reading on annual inflation was 5%.

The July increase matched the 5.6% level in January 1991, when the Persian Gulf War was raging.

"It's obviously disturbing - it's a bad number," said David Wyss, chief economist for Standard & Poor's.

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